Major classifications of premises and equipment, stated at cost, are as follows.


	2025			2024
Land	$	23,582		$	21,104
Buildings and improvements		119,236			101,513
Furniture, fixtures and equipment		38,628			34,003
		181,446			156,620
Less: accumulated depreciation		(44,726	)		(39,488	)
Premises and equipment, net	$	136,720		$	117,132

At December 31, 2025, the Company had lease liabilities totaling $3,527 and right-of-use assets totaling $3,528 related to operating leases. At December 31, 2024, the Company had lease liabilities totaling $3,601 and right-of-use assets totaling $3,600 related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets.

Right-of-use asset and lease obligations by type of property are listed below.


December 31, 2025	Right-of-Use Asset		Lease Liability		Weighted Average Lease Term in Years		Weighted Average Discount Rate
Operating Leases
Land and building leases	$	3,528	$	3,527		12.1		3.29	%
Total operating leases	$	3,528	$	3,527		12.1		3.29	%


December 31, 2024	Right-of-Use Asset		Lease Liability		Weighted Average Lease Term in Years		Weighted Average Discount Rate
Operating leases
Land and building leases	$	3,600	$	3,601		12.5		3.29	%
Total operating leases	$	3,600	$	3,601		12.5		3.29	%

During 2023, the Company terminated two leases with a right-of-use asset balance of $2,051, lease liability of $2,062 and fees paid of $184, resulting in a loss of $173.

Operating lease costs are listed below.


	2025		2024		2023
Operating lease cost	$	611	$	597	$	745
Short-term lease cost		—		—		—
Variable lease cost		88		79		110
Total operating lease cost	$	699	$	676	$	855

There were no sales and leaseback transactions, leverage leases, lease transactions with related parties or leases that had not yet commenced during the periods ended December 31, 2025 or 2024.

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability as of December 31, 2025, is listed below.


Lease payments
Due in one year or less	$	596
Due after one year through two years		593
Due after two years through three years		475
Due after three years through four years		363
Due after four years through five years		269
Thereafter		2,027
Total undiscounted cash flows		4,323
Discount on cash flows		(796	)
Total	$	3,527